Public Accounts Committee Probes POLCO Over Alleged Breach of Finance Ministry Approval
Public Accounts Committee addressing key issues | Photo: People’s Majlis
The Police Corporative Society (POLCO) is facing new allegations of corruption over a contract worth MVR 350 million, which was reportedly awarded in breach of the Finance Ministry’s conditions.
The contract, granted to Police Catering (POLCAT) in 2018 to provide catering services to the Maldives Police Service, is now under scrutiny for exceeding the approved duration.
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According to details shared at a recent meeting of the Parliament’s Public Accounts Committee, the Finance Ministry’s tender board had authorised a five-year contract. However, POLCO signed a 10-year agreement instead, doubling the permitted term without formal approval.
Deputy Speaker Ahmed Nazim, who raised the matter during the committee’s meeting on Monday, said documentation shows that the contract is valued at MVR 35 million per year, amounting to MVR 350 million over a decade. He expressed concern over the disregard for regulations, suggesting that internal culture within some uniformed institutions may contribute to such irregularities.
Nazim further stated that if the contract had adhered to the five-year limit, it would have expired in 2023, ahead of the current presidential term. He alleged that extending the contract to 10 years may have been an attempt to prevent the opportunity from passing to another company under a new administration.
The inquiry into POLCO was launched earlier this year following the release of an audit report in January, which highlighted significant losses in connection to the 2013 police housing initiative, the ‘Blues Housing Project’. The audit found that the project, originally estimated to cost between MVR 745.3 million and MVR 859.9 million, had exceeded MVR 1 billion due to what was described as corruption and mismanagement.
The Auditor General’s Office recommended action against senior POLCO officials, including board directors, over the financial discrepancies.
The Public Accounts Committee has indicated that it will continue to review the operations of corporative societies, citing the need for transparency and accountability in the use of public funds.
